Majority of Bitcoin Holders Face Unrealized Losses as Market Sentiment Shifts

Key Facts

Amid growing caution in the digital asset market, on-chain data has revealed a concerning shift in trader sentiment as selling pressure intensifies. According to reports, the amount of Bitcoin held at an unrealized loss has surpassed the amount held at a profit for the first time in the current market cycle. This development follows continued price depreciation below the $58,000 level, which has pushed the cost basis for many recent buyers above the current spot market value.

This scenario reflects broader weakness across the crypto sector, with major peers like Ethereum and Solana facing similar headwinds over the recent quarter. Per market data, Bitcoin reaching this psychological milestone places additional strain on institutional holders who entered the market at higher price points. Expert analysis suggests that such on-chain shifts often precede a 'capitulation' phase before the market can establish a definitive bottom.

Looking ahead, Bitcoin was trading near $61701.61 (at close July 2, 2026) as it struggles to regain momentum. Investors are closely watching the economic calendar, specifically the Chinese Manufacturing PMI data due on June 30, 2026, for its impact on global risk appetite. Additionally, upcoming speeches from Fed officials Williams and Kashkari will be pivotal in determining the interest rate outlook, which remains a primary driver for crypto asset valuations.